In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to fall, and
the IS curve to shift to the ________, everything else held constant. A) up; left
B) up; right
C) down; left
D) down; right
C
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Government works to create a competitive marketplace to help foster competition, yet it also awards patents which prevent competition. Why are both competition and the patent system essential to creating a large economic pie?
What will be an ideal response?
What is the total cost at the break-even quantity calculated above?
a. $750 b. $1000 c. $1500 d. $2000
The curve that reflects the view that when tax rates are too high, lowering them not only creates greater incentive for suppliers to increase production, but ends up generating higher tax revenues, is known as the:
a. Phillips curve. b. Laffer curve. c. Engel curve. d. Rational expectations curve. e. consumption curve.
Spending on Social Security and Medicare as a part of the federal budget has grown to what percent by 2013?
a. 15 percent b. 25 percent c. 35 percent d. 45 percent